Reeves’ tax hikes force Timothy Taylor to raise price of a pint
Chancellor Rachel Reeves’ tax hikes have forced brewer Timothy Taylor to raise its prices as it slammed the “hostile fiscal and regulatory environment” it now faces.
The family-owned brewer said its industry is facing “significant input and labour cost increases” as well as dealing with the fall in business rates relief.
Timothy Taylor added that it has raised its prices to combat the rise in employer National Insurance contributions and the increase in the National Living Wage.
The West Yorkshire-based brewer, which is behind beers including Landlord and Boltmaker, said this move was “a necessity if we are to be able to continue to invest in the brewery and our high-quality beer brands”.
In accounts filed for its latest financial year, the business also said the Chancellor’s Autumn Budget “further increased the already heavy cost burden on the hospitality and brewing sectors” and also hit out at the reductions in business property relief on inheritance tax for shares in family-owned companies.
The company said that together this “represents a series of measures which are damaging to Timothy Taylor’s business model”.
In the accounts, which have been filed with Companies House, Timothy Taylor posted a turnover of £34.9m for the year to 30 September, 2024, up from £32.8m in the prior 12 months.
Its pre-tax profit also increased from £2.1m to £2.6m over the same period.
Timothy Taylor was founded in 1858 and is still owned by the Taylor family.
Timothy Taylor hits out at Rachel Reeves
A statement signed off by the board said: “The company and broader pub sector continue to be faced with significant input and labour cost increases as well as the recently announced reduction in business rates relief from 75 per cent to 40 per cent for much of the on-trade.
“All of this in the context of a challenged British economy and consumer and the need for us to recover cost price increases from our customers to offset the reduced profitability from higher employer National Insurance contributions and the 6.7 per cent increase in the National Living Wage; a necessity if we are to be able to continue to invest in the brewery and our high-quality beer brands.
“The Chancellor’s October 2024 Budget further increased the already heavy cost burden on the hospitality and brewing sectors.
“When combined with the reductions in business property relief on inheritance tax for shares in family-owned companies, it represents a series of measures which are damaging to Timothy Taylor’s business model.
“The benefits of the marginal reduction in draught beer duty, which were also announced in the Budget, are far outweighed by the cost increases imposed.
“Our strategy is based on long-term patient investment which benefits all stakeholders, whether employees, tenants, customers, suppliers or shareholders.
“A hostile fiscal and regulatory environment is not conductive to such investment in the growth of the business.”